TLDR: SoundHound AI reported a record-breaking second quarter in 2025, with revenue surging 217% year-over-year to $42.7 million, significantly exceeding analyst expectations. Driven by robust demand for its voice AI solutions across automotive, enterprise customer service, and restaurant sectors, the company has raised its full-year 2025 revenue forecast to between $160 million and $178 million. CEO Keyvan Mohajer highlighted this as the company’s ‘strongest ever quarter,’ underscoring the success of its strategic initiatives and a repeatable growth formula.
SoundHound AI, Inc. (Nasdaq: SOUN), a prominent leader in voice artificial intelligence, has announced an outstanding financial performance for the second quarter of 2025, leading to a significant upward revision of its full-year revenue outlook. The company reported a record quarterly revenue of $42.7 million, marking an impressive 217% increase compared to the same period last year. This figure substantially surpassed Wall Street’s consensus estimates, which were around $32.9 million.
The strong Q2 results have prompted SoundHound AI to raise its full-year 2025 revenue guidance to a range of $160 million to $178 million. This new forecast is an increase from its previous projection of $157 million to $177 million and also exceeds current analyst expectations, which hovered between $159.6 million and $161.2 million.
Keyvan Mohajer, CEO and Co-Founder of SoundHound AI, expressed his satisfaction with the results, stating, ‘In SoundHound’s strongest ever quarter, many of our previous strategic moves delivered high-impact results with growth across every business unit.’ He further added, ‘We have demonstrated a repeatable success formula.’
The remarkable growth is attributed to surging demand for SoundHound’s voice AI solutions across a diverse range of industries. In the automotive sector, the company secured a landmark deal with a major original equipment manufacturer (OEM) in China and expanded its partnership with KIA in India, alongside rolling out LLM-enhanced Chat AI in North America. The enterprise AI customer service segment also saw significant traction, with the Amelia 7 platform being adopted by 15 large enterprises. Furthermore, SoundHound’s AI and automation solutions for restaurants continued their strong momentum, securing new customer wins including Red Lobster, Peter Piper Pizza, and Applebee’s, while deepening relationships with existing clients like Chipotle and Firehouse Subs. The company’s active network in the Quick Service Restaurant (QSR) segment now encompasses over 14,000 restaurants.
Financially, SoundHound AI reported an adjusted loss of -$0.03 per share, outperforming analyst expectations of a larger loss. The company maintained a healthy financial position, ending the quarter with $230 million in cash and no debt. While GAAP gross margins were 39.0%, non-GAAP gross margins stood at 58.4%, with management anticipating a recovery to approximately 70% over the next 18 to 24 months through automation and product mix shifts. Despite an adjusted EBITDA loss of $14.3 million, the company is targeting adjusted EBITDA profitability by the end of 2025. In Q2, SoundHound AI also surpassed a significant operational milestone, processing over 1 billion queries per month on its platform.
Also Read:
- SoundHound AI Acquires Amelia to Bolster Conversational AI and Expand Enterprise Reach
- Globant Reports Strong Q2 2025 Results Driven by Strategic AI Initiatives and Record Pipeline Growth
Following the earnings announcement, SoundHound AI’s shares experienced a notable surge, with jumps ranging from 10.5% to 26.4% in premarket and extended trading, reflecting investor confidence in the company’s growth trajectory and market position in the expanding voice AI landscape.
